If a trade union is formed to bargain with a monopsony employer, then in this labour market:

wages will increase and employment may either increase or decrease.

What would affect the labour supply curve for an occupation?

The introduction of a trade union

By restricting the labour supply, a trade union will

Increase the wage and lower employment

A monopsony employer will tend to...

Pay below competitive market rates

What factor DOES NOT affect the supply of labour?

A change in the price of the product

Which of the following makes demand for labour inelastic?

Difficult to replace workers with machines

If supply of labour is elastic, this means that...

Workers can easily move into the job

When demand for labour is wage elastic this means

there is a more than proportionate fall in lab demand as wages rise

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Labour Market Revision

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A theme 3 edexcel labour markets rev quiz

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Questions 14

Answers

1
If a trade union is formed to bargain with a monopsony employer, then in this labour market:
employment will increase
wages will increase and employment may either increase or decrease.
employment will decrease
the wage rate will be above the competitive level.
2
What would affect the labour supply curve for an occupation?
A change in how easy it is to substitute labour for capital
A change in the price of the product being produced
The introduction of a trade union
A change in the physical productivity of labour
3
Which job is likely to have the highest labour elasticity of supply?
A Level Economics Teacher
School dinners supervisor
Celebrity chef
Surgeon
4
What wage will this profit-maximizing monopsony pay for its labour?
W2
W1
W3
5
By restricting the labour supply, a trade union will
Increase the wage and lower employment
Increase wages and increase employment
Keep the same wage and increase employment
Keep the same wage and lower employment
6
A monopsony employer will tend to...
Pay market rates
Pay the minimum wage
Pay below competitive market rates
Pay a market premium for labour
7
What factor DOES NOT affect the supply of labour?
Level of skills, experience and qualifications
Level of wages in other occupations
Demographic Factors
A change in the price of the product
8
Which of these describes Monopsony?
Many sellers face one buyer
Perfect competition
No barriers to entry
Many buyers face one seller
9
Which of the following makes demand for labour inelastic?
Easy to replace workers with machines
Difficult to replace workers with machines
Workers' wages are a large % of the firm's total costs
The demand for the product the workers make is elastic
10
If supply of labour is elastic, this means that...
People find it difficult to move between jobs
Workers are paid higher wage rates
Workers can easily move into the job
Firms demand more workers
11
When demand for labour is wage elastic this means
workers are unlikely to be replaced by capital as wages rise
there is a more than proportionate fall in lab demand as wages rise
workers are less likely to be replaced by capital goods, as wages rise
there is an increase in the demand for labour, as wages rise
12
Which of these affects the supply of labour (not the demand)
Profitability of firms
Size of working population
The state of the demand
productivity of the labour
13
Labour is a derived demand.
True
False
14
Shifts in the Labour Demand Curve are not caused by...
A change in the cost of capital goods.
A change in the price of the company's good.
A change in the wage rate.
A cost cutting subsidy.

Labour Market Revision Flashcards | StudBud